Refining shortfall and LNG bottlenecks keep oil prices elevated, IMF warns

The IMF highlighted that a structural deficit in global refining capacity has widened the crack spread to nearly $100 per barrel, pushing retail diesel and gasoline prices to record levels. In addition, disruptions in LNG transport routes, especially around the Hormuz Strait, limit alternative gas supplies and keep shipping costs high. These twin constraints mean that even a rapid end to conflict in the Gulf region may not bring immediate relief to energy markets, according to the Fund’s senior economist.